Sysco (NYSE:SYY) Releases Earnings Results, Beats Estimates By $0.02 EPS

Sysco (NYSE:SYY) released its earnings results on Tuesday. The company reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.02, FiscalAI reports. The company had revenue of $22.12 billion during the quarter, compared to analyst estimates of $21.95 billion. Sysco had a return on equity of 103.57% and a net margin of 2.08%.Sysco’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the company posted $1.48 earnings per share. Sysco updated its FY 2027 guidance to 5.025-5.117 EPS and its Q1 2027 guidance to 1.180-1.200 EPS.

Here are the key takeaways from Sysco’s conference call:

• Sysco exceeded fourth-quarter expectations, reporting 4.7% revenue growth to more than $22 billion and adjusted EPS of $1.53; full-year adjusted EPS reached $4.61 despite pausing share repurchases.
• U.S. local case volumes accelerated to 2.6% in Q4, while improved sales-team retention, AI-enabled selling tools, customer penetration, and new-customer wins supported stronger momentum heading into fiscal 2027.
• Management guided to fiscal 2027 revenue growth of 6%-7% and adjusted EPS growth of 9%-11%, supported by approximately 2.5% U.S. local case growth, positive Sysco Brand mix, continued international profit growth, and a 53rd week.
• Sysco expects approximately $100 million of in-year savings from AI-driven efficiency initiatives in fiscal 2027, with a roughly $160 million run-rate benefit and additional opportunities in routing, inventory forecasting, procurement, contract management, and back-office technology.
• The Restaurant Depot acquisition remains subject to FTC review after the agency issued a second request, while the transaction will temporarily suspend buybacks and increase leverage; management said it remains confident the deal will close by the third quarter of fiscal 2027 and that rapid deleveraging will follow.

Sysco Price Performance

NYSE SYY traded up $1.42 on Wednesday, reaching $84.21. 486,684 shares of the company’s stock traded hands, compared to its average volume of 4,188,210. The stock has a market cap of $40.31 billion, a PE ratio of 23.33, a P/E/G ratio of 3.35 and a beta of 0.64. Sysco has a 12 month low of $68.19 and a 12 month high of $91.85. The stock has a 50-day simple moving average of $80.79 and a 200 day simple moving average of $80.28. The company has a debt-to-equity ratio of 5.58, a current ratio of 1.33 and a quick ratio of 0.80.

Insider Activity

In other Sysco news, Director John M. Hinshaw acquired 13,304 shares of the business’s stock in a transaction dated Tuesday, May 26th. The stock was bought at an average price of $75.17 per share, with a total value of $1,000,061.68. Following the purchase, the director owned 40,200 shares of the company’s stock, valued at approximately $3,021,834. This trade represents a 49.46% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.56% of the company’s stock.

Institutional Trading of Sysco

Hedge funds have recently added to or reduced their stakes in the business. State Street Corp increased its holdings in shares of Sysco by 0.9% in the third quarter. State Street Corp now owns 26,669,576 shares of the company’s stock worth $2,195,973,000 after buying an additional 246,542 shares during the period. Morgan Stanley raised its stake in shares of Sysco by 9.0% during the fourth quarter. Morgan Stanley now owns 6,058,405 shares of the company’s stock valued at $446,444,000 after acquiring an additional 500,881 shares during the last quarter. Wellington Management Group LLP increased its holdings in Sysco by 3,977.1% during the 3rd quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company’s stock valued at $387,935,000 after purchasing an additional 4,595,819 shares during the period. Charles Schwab Investment Management Inc. grew its position in shares of Sysco by 2.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,190,972 shares of the company’s stock worth $235,143,000 after buying an additional 61,915 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in Sysco by 12.0% in the 2nd quarter. Ameriprise Financial Inc. now owns 2,639,931 shares of the company’s stock worth $201,076,000 after purchasing an additional 283,706 shares in the last quarter. 83.41% of the stock is owned by institutional investors.

Key Stories Impacting Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Quarterly results exceeded expectations. Sysco reported $22.12 billion in sales, above the $21.95 billion consensus, while adjusted EPS of $1.53 topped estimates of $1.51. Revenue increased 4.7% year over year, supported by stronger U.S. and international demand. Sysco Corporation tops estimates as it points to growing momentum in the U.S.
• Positive Sentiment: Management issued an optimistic FY2027 outlook. Sysco forecast 6%–7% sales growth and 9%–11% adjusted EPS growth, above analyst expectations for approximately 5% EPS growth. The outlook includes about $100 million in cost savings from supply-chain, automation and AI-related initiatives. Sysco FY2026 results and FY2027 guidance
• Positive Sentiment: U.S. foodservice case volume rose 2.5%, international sales grew 6.7%, and quarterly operating income increased 10.6% to $983 million. Sysco also returned approximately $1.2 billion to shareholders through dividends and share repurchases.
• Neutral Sentiment: The planned acquisition of Jetro Restaurant Depot remains an important investor focus. Sysco cited transaction-related financing costs, while investors continue to assess the deal’s potential synergies, leverage and integration risks.
• Negative Sentiment: Food-safety concerns are weighing on sentiment. CEO Kevin Hourican said Sysco stopped purchasing iceberg lettuce from Mexico and Taylor Farms amid a U.S. cyclosporiasis outbreak. The move could disrupt supply and increase costs, while the related publicity creates near-term reputational risk. Sysco lettuce purchasing suspension
• Negative Sentiment: Despite the adjusted earnings beat, fourth-quarter gross margin declined 17 basis points to 18.7%. Fiscal-year GAAP net earnings fell 3.9%, and Sysco’s high debt burden may make investors more cautious about financing the proposed acquisition.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Sanford C. Bernstein reduced their price objective on Sysco from $90.00 to $85.00 and set a “market perform” rating for the company in a research note on Wednesday, April 29th. Piper Sandler restated a “neutral” rating and set a $84.00 price target on shares of Sysco in a research report on Wednesday. Wall Street Zen cut shares of Sysco from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Melius Research lowered Sysco from a “hold” rating to a “sell” rating in a report on Tuesday, July 7th. Finally, Morgan Stanley increased their price target on Sysco from $84.00 to $88.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 16th. Eight equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Sysco has a consensus rating of “Hold” and an average price target of $88.58.

About Sysco

Sysco Corporation (NYSE: SYY) is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.